BPOs, traditional occupiers continue to boost PH’s office market
The Philippine office sector continues to see a positive net takeup for the second consecutive quarter due to the sustained demand from outsourcing and traditional firms, said property consultancy firm Colliers Philippines.
During its Q2 market briefing, Colliers said net absorption in the second quarter reached 45,100 square meters (sq.m.), its highest record since Q1 2020.
The firm stated that this figure “indicates that Metro Manila transactions are holding firm despite the popularity of hybrid work arrangements.”
The property consultancy firm also foresees a sustained absorption in the office market for the rest of 2022, hitting 350,000 sq.m. by year-end. This is a stark improvement from 2021’s 273,100 sq.m. record.
Colliers Philippines Associate Director for Office Services-Tenant Representation Kevin Jara added, “Coming from the positive results of the last two quarters, we expect the cadence of office space transactions to be sustained until the end of the year, supported by a robust return of outsourcing demand, strengthening US dollar and the improving Covid situation.”
Colliers also reported that around 325,100 sqm worth of office transactions were recorded in the first half, 62% higher than the 200,700 sqm in the same period a year ago.
“Colliers is starting to see a pickup in demand for office space as more traditional occupiers implement RTO (return to office) and outsourcing firms pursue their expansion plans,” the company concluded.
